The talent spotter has played a key role in the Magpies’ recent success, unearthing the likes of Hatem Ben Arfa, Cheick Tiote, Yohan Cabaye and Papiss Cisse as they finished fifth in last season’s Barclays Premier League.
The club’s managing director Derek Llambias said: “We are delighted to have agreed an eight-year deal with Graham, and very pleased that he has committed his long-term future to the club.
“He has been instrumental in helping us to bring some truly exceptional players to Newcastle United and he has deservedly built one of the best reputations in the business.
“Graham works tirelessly to identify talented young players from across the world and has done a magnificent job over the last two years. He has the complete faith and support of the owner, the board and the manager, and it is excellent news that the club will continue to benefit from his expertise for many years to come.”